Is the IoT one of the most valuable potential applications for Blockchain?

At the mention of blockchain technology, what the mind of the average individual conceives is bitcoin. However, disruptive ability of the distributed ledger technology exceeds FinTech. Thankfully, it has been gaining enormous attention in many areas beyond its cryptocurrency roots since more or less 2014. At the heart of Blockchain technology is the secure exchange of data and the validation of data across multiple stakeholders without distance acting as a barrier. This makes it a compelling proposition for IoT devices and applications in every sector imaginable.

The blockchain is a bigger deal than the internet and when we combine it with IOT we have two bigger deals that are ready to change our way of lives and put us in another level of sophistication. With blockchain, the internet of things becomes real and smarter such that they can do incredible powerful things such as trading and negotiation without human interference. The convergence of blockchain and the Internet of Things is on the agenda of many companies and there are existing implementations, solutions and initiatives that are yet to be implemented.

As Internet of Things applications are by definition distributed it’s only normal that the distributed ledger technology, which blockchain is, will play a role in how devices will communicate directly between each other (keeping a ledger and thus trail of not just devices but also how they interact and, potentially, in which state they are and how they are handled).

Blockchain is designed as a basis for applications that involve transaction and interactions. These can include smart contracts that are automatically carried out when a specific condition is met, for instance regarding the conditions of goods or environmental conditions or other smart applications that support specific Internet of Things processes. This way blockchain technology can improve not just compliance in the IoT but also IoT features and cost-efficiency.
Why Blockchain is a game changer for IOT

When IOT devices leverage on the blockchain, new ways to automate business processes are created such that there won’t be need to set up a complex and expensive centralised IT infrastructure. With blockchain, data protection is fostered between IOT devices, stronger working relationship is ensured between them and a higher and greater level of efficiency can be achieved. Thus, it can be well said that; although blockchain was not originally created for IOT devices, it disruptive ability has been realised and it’s distributive nature has make IOT one of its main applications. As such, blockchain does the following:

• Enable IOT devices to become smarter
• Invents new method of digital interactions so that business transactions can be revolutionised
• It reduces the cost and complexity of operating sustainable businesses.

Railz understands the mutual relationship between these two giants (blockchain and IOT) and has created a Language for Robot Conversations and a platform that enables billion devices to reach an optimised consensus, negotiate and deliver the internet of things economy autonomously on a peer-to-peer basis without human intervention while leveraging on the Ethereum blockchain.